Your Income Is Your Business's Most Expensive Asset.

Own-occupation pays you if you can't do your specific job — even if you could technically work somewhere else. Any-occupation only pays if you can't work at all.

For a periodontist, own-occupation means losing fine motor control from a hand tremor qualifies as a disability — even if she could consult, teach, or write. Any-occupation would deny that claim entirely. For self-employed professionals, own-occupation isn't a premium feature. It's the only definition that actually protects the income you built.

Your personal disability policy replaces your income — it won't pay your rent, your staff, or your equipment loans. Business Overhead Expense (BOE) coverage is a separate policy that keeps the lights on.

A solo dentist earning $280,000 a year has roughly $18,000/month in overhead: office lease, dental assistant salaries, equipment financing, malpractice insurance. Standard disability replaces her personal income. It does nothing for those fixed costs. After 60 days, her practice closes — even if she recovers.

The elimination period is your deductible measured in time, not dollars — the gap between day one of disability and day one of your benefit check. Most professionals choose 90 days.

A 90-day elimination period means you need 3 months of liquid reserves — or business credit — to bridge the gap. Shorter periods (30, 60 days) mean higher premiums. Longer periods (180, 365 days) mean lower premiums but a larger emergency fund requirement. Self-employed professionals often choose 90-day because it balances premium cost against realistic cash reserves.

Yes — your entity type determines how disability premiums are taxed, whether benefits are taxable, and which riders are available to you.

A sole proprietor pays premiums with after-tax dollars — meaning benefits are received tax-free. An S-Corp owner who runs premiums through the business may deduct them, but that makes benefits taxable income. The net effect is often identical, but the structure matters for tax planning and benefit calculation.

Expect to pay 2–4% of your annual income for a comprehensive own-occupation policy. For most self-employed professionals earning $150,000–$350,000, that's $300–$700 per month.

Premium is driven by age, health, occupation class, benefit amount, elimination period, and benefit period. A 38-year-old dentist in good health pays roughly $380/month for $8,000/month in own-occupation benefits to age 65. A 52-year-old contractor with the same income pays $620/month for the same benefit.